Answer the Following Questions Using the Information Below:
as Part

question 67

Multiple Choice

Answer the following questions using the information below:
As part of the budgeting process,Lillee's Petanque Company developed the following static budget for August.Lillee is in the process of preparing the flexible budget and understanding the results.The actual results are for the month of August.
$\begin{array}{lrlr}&\text { Actual } & \text { Flexible } & \text { Static } \\&\text { Results } & \text { Budget } & \text { Budget }\\\text { Sales volume (in units) } & 20000 &\underline{\quad\quad} & 25000 \\& & & \\\text { Sales revenues } & \$ 1000000 & \$ & \$ 1250000 \\\text { Variable costs } & \underline{512000} & \$ \underline{\quad\quad}& \underline{600000} \\& & & \\ \text { Contribution margin } & 488000 & \$ & 650000 \\& & &\\\text { Fixed costs } & 458000 & \$ \underline{\quad\quad}& 450000 \\\text { Operating profit } & \$ 30000 & \$ \underline{\quad\quad}& \$ 200000\end{array}$
-The flexible budget will report ________ for variable costs.

• A)$640 000
• B)$600 000
• C)$480 000
• D)$512 000

---

Definitions:

Electronic Data Interchanges

The computer-to-computer exchange of business documents in a standard electronic format between business partners.

Formal Impression

The perception of professionalism, respect, and seriousness conveyed through one's communications or appearance.

Printed Documents

Physical documents that have been printed on paper.

Compositional Modes

Different methods and structures used in writing and speaking to convey messages, such as description, narration, and argumentation.